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Backed By Kalon Venture, South African Cybersecurity Startup Sendmarc Goes International

April 15, 2021

Sendmarc, a Johannesburg-based cybersecurity platform has secured commitment of an undisclosed amount from Kalon Venture Partners, a South African venture capital fund to expand internationally. The announcement was made by CEO Sam Hutchinson.

Sendmarc chief executive officer (CEO) Sam Hutchinson — chief executive officer (CEO) Sam Hutchinson

“We welcome the support and continued commitment of Clive Butkow [CEO of Kalon Venture Partners] and his team. Sendmarc looks forward to further expanding its team and growing its business in the global market, ”commented Sam Hutchinson.

Here Is What You Need To Know

This new commitment follows a first transaction concluded in December 2019 between the two entities. Kalon Venture which supports technology companies with high growth potential had pledged to support the startup that solves identity theft and phishing problems in its plan to reach 200,000 small and medium-sized enterprises (SMEs).

Clive Butkow attributes the investment made in Sendmarc to its business model and the offer created.

“Kalon’s strategy is to invest in the best teams who build innovative, scalable technology; The Sendmarc team ticks all of these boxes. It continues to demonstrate exceptional leadership capacity while leveraging technological innovation and showing strong revenue growth, ”he said.
Read also:South African eHealth Startup Quro Medical Secures $1.1m In A Rare Funding Round

At Look At What The Startup Does

Sendmarc, launched in 2018, is spearheaded by chief executive officer (CEO) Sam Hutchinson, who was also the founder of marketing startup Everlytic, acquired by Vox Telecom in 2016.

This protocol is designed to give email domain owners the ability to protect their domains from unauthorised use, such as impersonation attacks or email spoofing. The purpose and primary outcomes of implementing DMARC are to protect a domain from being used in business email compromise attacks, phishing emails, email scams and other invasive cyber threats.

Hutchinson said the need for a secure and safe email environment was of paramount importance today.

On its website, Sendmarc claims to have processed around 400 million emails per month, since the start of 2021.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Sendmarc cybersecurity Sendmarc cybersecurity

Ghana-based VC Again Leads A $200k Seed Round In Fintech Startup BezoMoney

There aren’t many licensed fintech startups in Ghana compared to Nigeria, but Goodsoil, the London and Accra-based venture capital firm, is taking strategic positions in the few that exist. After leading a $940k funding round in Zeepay, Ghana’s fintech company to pick up the country first ever Dedicated Electronic Money Issuers (DEMI) license in December, 2020, the venture capital firm is back again, this time pouring $200k seed in another Ghanaian fintech startup BezoMoney.

*Mubarak Sumaila, co-founder of BezoMoney*

“Our goal from the start has been to help the unbanked to gain upward social mobility. There are a lot of people in the informal sector in Africa and hardly do their lives improve in any way from year to year. Through our research, we realized that this is a result of their limited access to formal financial services which stems from their inability to build verifiable credit histories even though they save and access credit through informal financial schemes. BezoMoney exists to change that. We are committed to growing with our customers and meeting their financial needs with tailored products and services. We started focusing on young people as well because they were reaching out to us every day through calls and an email requesting to use our products, so we expanded our offering to include them,” Mubarak Sumaila, co-founder of BezoMoney said.

Here Is What You Need To Know

BezoMoney will use the investment to acquire the Payment and Financial Technology Service Providers (PFTSP) license in Ghana. The funding will also help the company develop and launch new products, such as BezoCredit, an interest-free credit product, and BezoInvest, a financial investment product. Users will be able to invest their money through BezoInvest.

Additionally, the funds will be used to increase the company’s user base, team, and scale around the world.

A Look At What The Startup Does

Based in London and Accra, GOODsoil’s portfolio is diverse, and extends across the UK and Sub-Saharan Africa — with a strong focus on Fintech. The company makes up Crunchbase’s list of less than 100 Female Founded Investors active in Africa, and one of only 125 Female Founded Venture Capital Investors with Investments in England.

“Mubarak and his BezoMoney team are providing the unbanked and young people with easy access to powerful and flexible wealth-generating tools that are typically hard to access. We are excited to partner with BezoMoney to accelerate their growth and assist them in their scale,” Orla Enright of Goodsoil VC commented on their investment into the African fintech startup.

Founded in 2017 by Charmaine Hayden, Orla Enright, Ashley Thompson-MacCarthy and Richard Mensah, and based in London and Accra, GOODsoil VC aims to fund 50+ startups in the next 5 years, while also building longterm relationships with investors who are equally passionate about tech innovation, early-stage companies and investment in Africa.

“GOODsoil will remain bullish on Africa for the foreseeable future, as we scale our portfolio and invest in new exceptional startups. We look forward to shortly confirming a $67.5m fund we are currently raising,” said Hayden.

A Look At What The Startup Does

BezoMoney, a fintech company established in 2019, creates and distributes digital financial services and goods for unbanked and younger customers.

Mubarak Sumaila and Diana D. Osei created the creative fintech out of the Meltwater Entrepreneurial School of Technology (MEST) program.

Since its founding, the company has developed products that offer social mobility to the unbanked and digitize informal savings group transactions.

“BezoMoney’s vision is to become a digital bank for the unbanked as well as the younger generation; a digital bank that provides financial products and services that span across the entire financial spectrum, meeting the needs of its users on their journey to financial stability.”

BezoSusu, the company’s flagship product, is a digital-personal and community savings product that helps users in the informal sector meet their savings goals. BezoSusu is based on USSD and is integrated with Mobile Money to enable users to transact using their Mobile Money wallets, according to the fintech.

BezoMoney collaborates with established financial institutions to offer its services and goods.

To meet regulatory requirements, BezoMoney partners with existing financial institutions and mobile operators to provide its services and goods.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

BezoMoney Ghana BezoMoney Ghana

Smart Cities Innovation Program Calls For Applications From African Startups

The “Smart Cities Innovation Program (SCIP)”, an accelerator that supports digital urban innovations, has launched a call for applications for African startups working in the fields of smart mobility, smart housing and fintech.

In the field of intelligent mobility, the program is looking for solutions based on new technologies to enable the transport of people and goods within communities. The target subjects are: shared mobility, road safety, e-parking, electronic charging, micro-mobility, as well as ticketing, payment and information.

When it comes to smart housing, the target is start-ups that have developed forward-looking housing and habitat solutions, and who seek to expand access to affordable housing. This can include smart construction, homes better suited to local demand, and smart integration (with utilities like energy, water, waste management).

Regarding the field of fintech, the program is looking for start-ups that have developed ways of deploying financial technology to make the various smart solutions affordable for different market segments. Financial solutions are typically credit, savings, investing, money transfer, and insurance solutions.

In general, these start-ups must have operations in one or more African countries, a clientele, a social or environmental impact, a potential for growth and job creation.

Applicants have until May 9, 2021 to submit their applications.

The selected start-ups will benefit from one-on-one mentoring, training as well as networking and networking with business partners and international investors. The training will be tailored to the needs of the business.

The program will run for 6 months starting in June in Rwanda. Participation is completely free, including trips to Rwanda. Note that the SCIP is fully funded by the German Federal Ministry for Economic Cooperation and Development.

In Africa, by 2030, 50% of Africans are expected to live in urban areas. According to the World Bank, increasing urbanization holds great potential for the continent, as it can lead to economic growth and poverty reduction. At the same time, it risks worsening inequalities and urban poverty. Therefore, concrete action to guide Africa’s urban transformation in terms of sustainable development goals is needed.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Smart Cities Innovation Program Smart Cities Innovation Program

South African eHealth Startup Quro Medical Secures $1.1m In A Rare Funding Round

Quro Medical, a Sandton, South Africa-based eHealth startup has landed $1.1 million after almost three years of operating secretly from by Kenya-based Enza Capital and South African VC firm Mohau Equity Partners. With the funding, the startup wants to attract and retain talent and extend into other African markets.

Mike Mompi, partner and CEO of Enza Capital — Mike Mompi, partner and CEO *of Enza Capital*

Why The Investors Invested

“As our collective healthcare systems struggle to care for patients beyond the walls of a hospital, which we’ve seen exacerbated with the onset of the COVID-19 pandemic, remote patient monitoring and healthcare delivery will undoubtedly form a core part of the lasting solution,” said Mike Mompi, partner and CEO of Enza Capital.

CEO Dr Penny Moumakwa of Mohau Equity Partners commenting on the investment said:

“We are very excited to be invested in Quro, they are a dynamic management team, building out a global medical solution, that will showcase the ability of entrepreneurs on the African continent in advanced digital healthcare.”

A Look At What Quro Medical Does

Founded in 2018, by Dr Vuyane Mhlomi, Zikho Pali and Rob Cornish in 2018 Quro Medical provides services to manage ill patients in the comfort of their homes.

Quro Medical now employs about 150 physicians. Mhlomi claims his business is a first mover in Africa, which means he anticipates the arrival of other players in line with industry trends. To meet the demands of its rising client base, the company, which now employs 150 physicians, aims to expand its hospital-at-home services and scale its operations across the world.

Most of the company’s big medical schemes (health insurance) in South Africa have been converted to customers, according to the company. They account for more than 90% of the country’s overall medical scheme market.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Massive Evacuation of Ethiopian Migrants from Yemen in Wake of Tragic Boat Sinking

April 14, 2021

There has been a massive evacuation of Ethiopian migrants from Yemen after a boat mishap that claimed the lives of over a dozen people including 16 children while on a perilous journey across the Gulf of Aden. About one hundred and sixty Ethiopian migrants returned home safely with the assistance of the International Organization for Migration (IOM). More than 32,000 migrants, predominantly from Ethiopia, remain stranded across Yemen in dire, often deadly, circumstances.

Jeffrey Labovitz, IOM’s Director for Operations and Emergencies.

“The conditions of migrants stranded in Yemen have become so tragic that many feel they have no option but to rely on smugglers to return home,” said Jeffrey Labovitz, IOM’s Director for Operations and Emergencies.

At least 42 people returning from Yemen are believed to have died on Monday when their vessel sank off the coast of Djibouti. Last month, at least 20 people had also drowned on the same route according to survivors. IOM believes that, since May 2020, over 11,000 migrants have returned to the Horn of Africa on dangerous boat journeys, aided by unscrupulous smugglers.

“Our Voluntary Humanitarian Return (VHR) programme provides a lifeline for those stranded in a country now experiencing its seventh year of conflict and crisis. We call on all governments along the route to come together and support our efforts to allow migrants safe and dignified opportunities to travel home,” added Labovitz.

COVID-19 has had a major impact on global migration. The route from the Horn of Africa to Gulf countries has been particularly affected. Tens of thousands of migrants, hoping to work in the Kingdom of Saudi Arabia (KSA), now find themselves unable to complete their journeys, stranded across Djibouti, Somalia and Yemen.

While the pandemic has also caused the number of migrants arriving in Yemen to decrease from 138,000 in 2019 to just over 37,500 in 2020, the risks they face continue to rise. Many of these migrants are stranded in precarious situations, sleeping rough without shelter or access to services. Many others are in detention or being held by smugglers.

“We cannot find jobs or food here; Yemen is a problem for us,” said Gamal, a 22-year-old migrant returning on the VHR flight. “I used to sleep in the street on cardboard. I could only eat because of the charity people would give me and sometimes we were given leftovers from restaurants. I never had much to eat.”

Since October 2020, in Aden alone, IOM has registered over 6,000 migrants who need support to safely return home. Today’s flight to Addis Ababa was the second transporting an initial group of 1,100 Ethiopians who have been approved for VHR to Ethiopia. Thousands of other undocumented migrants are waiting for their nationality to be verified and travel documents to be provided. Prior to departure on the VHR flight, IOM carried out medical and protection screenings to ensure that returnees are fit to travel and are voluntarily consenting to return. Those with special needs are identified and receive specialized counselling and support.

In Ethiopia, IOM supports government-run COVID-19 quarantine facilities to accommodate the returnees on arrival and provides cash assistance, essential items and onward transportation to their homes. The Organization also supports family tracing for unaccompanied migrant children.Across the Horn of Africa and Yemen, IOM provides life-saving support to migrants through health care, food, water and other vital assistance.

Today’s flight was funded by the US State Department’s Bureau for Population, Refugees and Migration (PRM). Post-arrival assistance in Addis Ababa is supported by EU Humanitarian Aid and PRM.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Arkebe Oqubay Receives African Support for his UNIDO Candidacy

Africa’s candidate for the position of Director General of the United Nations Industrial Development Organisation (UNIDO) Dr. Arkebe Oqubay has received full support of Africa based organizations. This is coming after the endorsement of Dr. Arkebe Oqubay by the 34th Assembly of the African Union Heads of State and Government held on 7 February 2021,, as the sole African candidate for the position of Director General of the United Nations Industrial Development Organisation (UNIDO), the African ministers of finance, planning and economic development of the United Nations Economic Commission for Africa (UNECA), meeting at their 53rd session (hybrid) in Addis Ababa, Ethiopia, on 22 and 23 March 2021, took note of the nomination of Arkebe Oqubay as the Africa candidate for the post of Director General of the United Nations Industrial Development Organization. They recognized the important role that the United Nations Industrial Development Organization must play in building forward better, and also in contributing to and supporting the industrial and economic policies that will support inclusive and sustainable growth in the developing world.

The ministers further acknowledged Mr. Oqubay’s proven track record in leading, formulating and delivering innovative and meaningful policy change across developing economies. They express their confidence that that Mr. Oqubay’s extensive experience, combined with his international outlook, makes him the best candidate for the role of Director General. They also recognized Mr. Oqubay’s far-reaching vision for a revitalized United Nations Industrial Development Organization and the focus that he is placing on carbon-neutral industrialization, global knowledge exchange and inclusive industrial growth.

To that effect, the African Ministers of Finance, Planning and Economic Development welcomed the opportunity to work closely with the United Nations Industrial Development Organization in the post-COVID-19 era and in the years to come; and extended their support for the candidacy of Mr. Oqubay for the post of Director General of the United Nations Industrial Development Organization. A statement was issued during the ministerial meeting to re-endorse Dr. Arkebe Oqubay was the sole African candidate for the post of Director General for UNIDO.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

ITFC and Republic of Cameroon Sign a US$750 Million Agreement on Key Sectors through Integrated Trade Solutions

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank Group (IsDB) and the Republic of Cameroon have signed on April 12, 2021 two agreements in a virtual signing ceremony between H.E. Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development (IsDB Governor) and Eng. Hani Salem Sonbol, CEO, ITFC.

The first signing is a three-year framework agreement amounting to US$ 750 Million under which ITFC will provide to Cameroon a financing envelop of US $ 250 Million annually over a period of three years to facilitate the imports of key commodities in the strategic sectors of energy, mining, in addition to the health sector with medical supplies including healthcare equipment. It will also sustain its already strong support to the priority sector of agriculture with the exports of agricultural commodities such as cotton, soy amongst others.

Through this framework agreement, ITFC will also be extending its support to SMEs and the private sector through financing facilities to local banks and financial institutions. It will also support trade development through capacity building initiatives to strengthen key sectors including healthcare. The agreement also enshrines Cameroon’s membership to ITFC’s flagship program, the Arab-Africa Trade Bridges (AATB) program, which aims to facilitate trade and investment flows between Arab and African regions.

In this regard, H.E. Alamine Ousmane Mey stated that, “We are very pleased with the agreements signed with ITFC. The three-year renewal of our cooperation framework is a sign of the good and strong cooperation between Cameroon and ITFC, and of the continued goodwill to implement a successful planning strategy in the country. The US $750 Million financing will help the Cameroonian government consolidate its economic recovery efforts in the specific context of the fight against the COVID-19 pandemic, by facilitating the importation of crucial energy products, medical supplies, and agriculture inputs, whilst strengthening the fundamentals of the economy of Cameroon through private sector and SME development. This is an opportunity for us to reiterate Cameroon’s sincere thanks to ITFC.”

The CEO of ITFC, Eng. Hani Salem Sonbol reiterated the Corporation’s commitment to supporting economic recovery in Cameroon saying that, “We are keen to continue our successful collaboration with the Government of Cameroon through providing trade solutions that best meet the needs of the country, especially in view of the impact of COVID-19. We are committed to working closer with our partners and to support the country in its efforts to develop important sectors such as agriculture, especially cotton, which is a major export commodity, as well as to support the country’s financial institutions to boost private sector development and SME growth.”

The second signing is related to a EUR 98 Million Murabaha Financing agreement in favour of Société de Développement du Coton (SODECOTON), to facilitate the purchase of agricultural inputs such as fertilizers, pesticides and herbicides, seed cotton, and soybeans. ITFC has a long-standing relationship with Cameroon and SODECOTON. ITFC financing to date has enabled the country to achieve a record production of 328,454 tons of seed cotton collected in 2019/2020, of which 115,000 tons of cotton lint were exported despite the COVID-19 pandemic.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

The Securities and Exchange Commission’s (SEC) circular on the trading of foreign securities by investment platforms in Nigeria

By Ibrahim Moshood

The apex regulator of securities in Nigeria, the Securities and Exchange Commission (“SEC”) has issued a circular, with respect to technology investment platforms providing the Nigerian public with access to foreign securities. The circular dated 8 April 2021, issues a strong warning to these investment platforms and Capital Market Operators (“CMOs”) in partnership with them to provide brokerage services. Both categories of players in the financial space were warned to desist from providing the Nigerian public, with access to foreign securities. This is pivoted on the grounds that these securities are neither registered with the SEC nor listed on the Nigerian Stock Exchange (“NSE”).

Ibrahim Moshood is an Associate at Centurion Law Group — **Ibrahim Moshood, an Associate at Centurion Law Group**

From 2018, technology start-ups have pioneered major disruptions of the financial space in Nigeria. These disruptions have been lauded by Nigerians, particularly at a time when there has been a persistent devaluation of the Naira. Savvy and upwardly mobile Nigerians have then opted to use these technology platforms, to save in foreign currencies and also purchase foreign stocks that are being offered. Some of these technology investment platforms include Trove, RiseVest, Chaka and Bamboo etc. They typically partner with CMOs in Nigeria for their expertise and already-procured brokerage licence.

As a background, recall that in December 2019, the SEC had published a statement to notify the Nigerian public of its interim orders to restrain an investment platform called Chaka Technologies Limited (“Chaka”). This order came about as a result of the advertisement and sale of foreign securities of companies such as Google, Alibaba, Facebook, Tesla etc. in Nigeria by Chaka. The SEC had informed the Investment Securities Tribunal (“IST”) that Chaka had offered securities for sale “outside the regulatory purview of the Commission and without requisite registration as stipulated by the Investment and Securities Act (“ISA”).

Chaka responded to the allegations above by releasing a press statement, denying the wrongdoing entirely. However, in March, Chaka announced that it had obtained a newly created licence from the SEC which allows it to offer the services above i.e. advertising and sale of foreign securities to the Nigerian public.

Notwithstanding the development above, the SEC had kept quiet for months on this issue until this recent circular, which Nigerians have reacted to as a deliberate attempt to stifle innovation by the regulators, create a multiple licensing regime, an inordinate drive for revenue and a shoddy attempt at stabilizing exchange rate of the Naira.

Currently, two major questions should be addressed by the SEC; Is the sale of foreign securities by these platforms prohibited in Nigeria?

Is there a licence issued by the SEC or some other regulatory agency that would allow these investment platforms to carry on the business of selling foreign securities in Nigeria?

Hopefully, the SEC will release a more informative circular or press statement clarifying what investment firms should do to continue offering these foreign securities. In the meantime, investors and investment firms alike are enjoined to consult professionals for more clarity.

Ibrahim Moshood is an Associate at Centurion Law Group

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Mauritius Issues Africa’s First P2P Lending Licence To Fintech Startup Fundkiss

Fundkiss, the pioneering crowdlending platform in Mauritius, has become one of the Africa’s first FinTech firms to be granted a Peer-to-Peer (P2P) Lending licence by the Financial Services Commission (FSC). The license came after the startup passed the country’s Regulatory Sandbox Licence (RSL) regime. With the new licence, the startup will be able to raise more money, including from international investors. It will also be able to finance its growing customer base of small companies with greater loan amounts than were previously permitted under the sandbox regime.

Elizabeth Howard, Acting CEO, African Crowdfunding Association (ACfA)

“Mauritius is the first country in Sub-Saharan Africa to have a specific regulation around this activity, by way of the FSC’s pioneering P2P Lending Rules. This means that, by extension, Fundkiss is the first African company to be granted a P2P lending licence under a tailor-made regulatory framework,” says Elizabeth Howard, Acting CEO, African Crowdfunding Association (ACfA), adding, “We are extremely proud of the Fundkiss team who have made a fundamental contribution to the development of the African crowdfunding industry and access to finance for SMEs.”

Here Is What You Need To Know

Fundkiss has come a long way from its inception in 2019, becoming the first P2P platform to gain clearance under the Regulatory Sandbox Licence, the first P2P platform to become operational in Mauritius, and now the first operational P2P platform to acquire the kiss of approval from the apex regulator for non-banking financial services in Mauritius.

Fundkiss was the first enterprise in Mauritius to be authorised under the RSL system of the Economic Development Board in July 2017. The crowdlending player’s activities began in 2019 after it was granted a licence under this experimental route designed to accelerate progress in the island economy.

Another Way Of Democratising Access To Finance For Local Startups In A Continent Filled With Foreign Venture Capital Firms

Since 2019, startups in Mauritius are experiencing reforms upon reforms in their favour. Fundkiss, which is pioneering crowdlending platform in Mauritius, is encouraged by the country’s National Regulatory Sandbox License regime of the Economic Development Board (EDB).

Mauritius’ Regulatory Sandbox License (RSL), which was introduced to the Mauritian business landscape by the National Budget 2018/2019, offers the possibility for an investor to conduct a business activity for which there exists no legal framework, or adequate provisions under existing legislation in Mauritius. All the investor needs to do is to submit a duly filled in application for the issuance of a Regulatory Sandbox License, demonstrating the innovative nature of the project at the local, regional or international level.

FundKiss was among the first set of startup companies in Mauritius issued with the regulatory sandbox licenses in 2019. Others include: Xen technologies Ltd a next-generation wealth management platform; SALT Technology Ltd, the first lending platform in Mauritius for blockchain-backed loans; Selfkey, a blockchain-based, decentralized identity management system which provides open source tools for identity owners and relying parties; PIRL, a blockchain implementation that strives to improve the accessibility of cryptocurrency and its related technologies; Olive Crowd project, a financial technology company which serves as an online equity crowdfunding platform; FusionX, which seeks to establish a FIAT enabled crypto currency exchange with offices and staff domiciled in Mauritius; FinClub, a P2P platform will provide an alternative mode of borrowing funds for the borrowers; Be Mobile Limited, an innovative eWallet service based on blockchain and leveraging on cryptocurrencies to transfer money and exchange currency at zero to low cost.

A Look At What Startup FundKiss Does

Fundkiss is Mauritius’ first licensed crowdlending platform that allows individuals and corporates to lend directly to SMEs and startups. The startup’s platform helps to connect borrowers (sole proprietors or startup companies) in search of financing, to lenders (individual or institutional investors) seeking to diversify their investments and support the real economy, with loan sizes ranging from Rs 50,000 ($1.2k) to Rs 10 million ($25k).

As of at January this year, Fundkiss had financed more than 100 projects for funding of over Rs 31 million ($781k) bringing together a community of more than 1,700 investors in the process, of whom more than 270 are active lenders, in that they have invested at least once in the last 12 months.

A typical fundraising campaign launched on Fundkiss runs for a period of 15 days on average.

What Is Remarkable About The Platform

It took about 2,900 approved lenders and 375 active lenders (those who have transacted at least once in the last 12 months) to cross the remarkable milestone of 100 projects funded on the Fundkiss network, which includes both individuals and institutional investors such as the SME Equity Fund.

Interestingly enough, the top three reasons for lenders to extend loans over the platform have been:

The yield: At an average of 10% per annum, the return on investments made over Fundkiss is far higher than other avenues available to investors in Mauritius.

Supporting SMES: Lenders are motivated by the ability to make a tangible difference to the real economy.

Achieving diversification for their portfolio: Fundkiss allows lenders to access an exciting new asset class of SME loans.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Fundkiss lending Fundkiss lending

After A Major Pivot, Ugandan Fintech Startup Numida Raises $2.3m Seed Round

Numida, a Kampala, Uganda-based fintech startup has announced the close of its $2.3 million seed round, led by Pan-African payments company MFS Africa. Also participating are DRK Foundation, Equilibria Capital, Segal Family Foundation and a host of other angel investors.

“One of the major reasons why financial institutions don’t give loans to these businesses is because they don’t have good financial track records and cash flow history,” said Mina Shalid, Numida’s co-founder. “That was the problem we set out to solve — to create the mechanisms to get that cashflow data and present it in a form that can be used and incorporated into the underwriting processes.”

Here Is What You Need To Know

With this new financing, Numida plans to expand aggressively in Uganda and pilot in a new market, preferably in West Africa (Ghana).

Numida also plans to introduce additional financial services such as payments, micro-insurance and deposits to its customers.

Why The Investors Invested

Investment by MFS Africa in Numida is rather strategic. MFS Africa is one of the main players in the African mobile money sector. Its CEO, Dare Okoudjou, recently said the company is actively considering acquisitions and investments to strengthen his network in East and West Africa. It also seeks to strengthen its presence in Cameroon, Gabon and Chad in central Africa and Rwanda, Uganda and Kenya in the east. Investment in Numida is the first confirmation of his statement.

“That’s an opportunity we see in the future. We were concerned about scaling across the continent and who would be the best partner for this. We thought MFS has a lot of expertise and footprint on the continent that will allow us to scale moving forward,” Dare Okoudjou said, about investment in Numida.

For its part, the San Francisco-based Draper Richards Kaplan Foundation is a global venture philanthropy firm supporting early stage, high impact social enterprises. The organisation focuses on early stage funding as well as provides rigorous support to entrepreneurs tackling some of society’s most complex problems. It provides $300,000 of unrestricted capital over three years. It also likes to join the board of directors of startups it invests in.

Based in the USA, Segal Foundation is a multi-stage impact investor focused on East Africa. The investor most recently was part of Ugandan mobility startup Tugende’s $6.3m fundraise in 2020.

The Bermudu and Switzerland-based Equilibria Capital is an asset management firm that manages investment funds.

A Look At What The Startup Does

Numida was founded in 2017 by Mina Shahid, Catherine Denis, and Ben Best, who saw an opportunity to create one of East Africa’s first digital fintechs focused on semi-formal micro and small businesses. Typically, these companies obtain loans from family, loan sharks, and unlicensed money lenders who have bad credit.

However, when the company was established, the owners had no intention of providing credit to companies. A bookkeeping tool that allowed conventional microfinance institutions (MFIs) to provide unsecured credit to semi-formal businesses was the focus of an initial pilot in 2016.

The founders anticipated that these microfinance organisations will continue to service these companies with data collected from months of bookkeeping. But they had no idea what would happen after nine months. Even though the MFIs seemed to love the data that Numida could provide, they were reluctant to change their underwriting habits, according to Shahid. As a result, they turned down all Numida customers who applied for loans across the site due to a shortage of collateral.

“So we thought among ourselves that if our mission is to unlock access to resources that these mom and pop shops need in order to grow their businesses, we’re not going to do that by partnering with these traditional MFIs; we had to do that ourselves,” he said.

After multiple revisions, the firm went live in October 2019, with the CEO claiming that lending levels had increased by 6x. To date, it has disbursed about $250,000 a month of unsecured credit to 3,000 micro and small enterprises in Uganda, totaling more than $2 million. The CEO explained that this is due to outstanding collections, repayment rates, and customer retention.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

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